US Fund Platinum Acquires Inventia Health to Enter India

The promoters, Janak Shah and family, sold a portion of their shares. Previous investors InvAscent Capital and Jacob Ballas exited their investments.

US-based buyout fund Platinum Equity Advisors has made its debut in India by acquiring a 75% stake in Mumbai-based pharmaceutical company Inventia Healthcare at a whopping deal of INR 2,500 Cr ($300 million).

Inventia Health invests in R&D to create novel pharmaceutical products. Their focus areas include microencapsulation, Novel Drug Delivery Systems (NDDS), Abbreviated New Drug Application (ANDA), and regulatory compliance.

The pharma company offers a diverse range of pharmaceuticals, including generic drugs, specialty medications, and formulations.

As part of the deal, the promoters, Janak Shah and family, sold a portion of their shares. Previous investors InvAscent Capital and Jacob Ballas exited their investments. Platinum now owns 75% of Inventia Healthcare.

The remaining ownership is split, with the promoters holding a minority stake and continue managing the business, as reported by the Economic Times.

Barclays advised Platinum on the transaction, while Rothschild and Stifel Financial Corp (Torreya) advised the exiting investors.

Founded in 1995, California-based Platinum Equity owns more than $48 billion of assets under management and a portfolio of approximately 50 operating companies globally.

Over the past 25 years, Platinum Equity has completed more than 450 acquisitions and debt financings, according to a company website.

In healthcare, Platinum owns LifeScan - a US-based manufacturer of glucose management products and solutions; and NDC, a US-based healthcare supply chain company.

Recent Pharma Developments

Recently, the Germany-based Bayer Pharma acquired a 25% stake, it didn't already own, in its joint venture with Ahmedabad-based Zydus Lifesciences for INR 282.2 Cr ($33.8 million)

With this, the 50:50 JV Bayer Zydus Pharma, created in 2011 for the sales and marketing of pharmaceutical products in India finally reached completion. Bayer now acquired full ownership of the entity, as per pre-agreed JV terms.

Likewise, Sun Pharma acquired a 16.33% stake in Michigan-based Surgimatix Inc. for $3.05 million. The drugmaker revealed on February 20 through a disclosure to the exchanges.

By investing in Surgimatix, Sun Pharma aims to enhance its portfolio and contribute to advancements in healthcare technology.

The Indian drugmaker also signed a definite merger agreement to wholly acquire its Israeli subsidiary Taro Pharmaceutical Industries for a deal of $347.73 million.

As per the merger deal, Sun Pharma agreed to acquire all outstanding ordinary shares of Taro Pharmaceutical that were not previously owned by the company or its affiliates for $347.73 million, approximately INR 2,891.76 Cr, in cash.

In a similar development, the Piramal Group’s subsidiary Piramal Alternative invested INR 110 Cr in Biodeal Pharmaceuticals, a contract development and manufacturing organization.

According to the company, the funds sought to be directed towards improving infrastructure and capacities, upgrading technology, and nutraceuticals manufacturing facility,